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DA: Government cost-cutting should start with the NEF’s R6m CEO
The DA says that government cost-cutting should start with the National Empowerment Fund’s (NEF) CEO, as she is earning more than R6m.
Image via: Facebook / Democratic Alliance
In a statement released by The Democratic Alliance (DA), the party has advised that government cost-cutting should start with the National Empowerment Fund’s (NEF) CEO, Philisiwe Mthethwa, as she is most likely South Africa’s highest paid civil servant with a combined salary package of more than R6m. Making her salary R2m more than that of President Cyril Ramaphosa.
DA MP for Trade and Industry, Dean Macpherson said that Mthethwa has held the title of “Highest Paid Civil Servant” for a number of years and her package includes a R2m bonus.
“Her massive salary is quite shocking given the fact that the NEF has little money to do its work and that the entity does not have much to show for its CEO’s exorbitant salary,” said Macpherson.
What the NEF has to show for itself
The NEF was set up in 1998 to provide capital funding for black entrepreneurs and while their initial work showed some success after being funded by Government, repeated budget cuts have rendered the entity without funding, except to fund their overpaid executives at a combined total of more than R17m, all who received bonuses ranging from R580 000 to R1.2m.
“It is becoming blatantly obvious that there is a myriad of Government entities that serve little purpose except to fund the lifestyles of highly paid executives,” said Macpherson.
DA says the time for talking is over
According to Macpherson, the objectives of the NEF is best served by being incorporated into the Industrial Development Corporation (IDC).
“There seems to be a universal agreement. This is something that the Parliamentary Committee for Trade & Industry has discussed for a number of years, yet little action has been taken
The time for talking is over. We cannot spend money to fund the lifestyles of overpaid civil servants at the expense of entrepreneurs who are desperate to scale up their businesses and create jobs,” added Macpherson.
Macpherson says the DA will seek answers from Trade & Industry Minister, Ebrahim Patel on when the NEF will be incorporated into the IDC so that they can start putting the interests of small businesses first.
